Network-1(US:NTIP)2023-11-02 20:47Financial Position - As of September 30, 2023, the company had cash and cash equivalents of $44,568,000 and working capital of $44,267,000[93] - As of September 30, 2023, the company's cash and cash equivalents and marketable securities totaled $44,568,000, with working capital at $44,267,000[128] - Working capital decreased by $3,092,000 from $47,359,000 at December 31, 2022, primarily due to dividend payments of $2,371,000 and increased operating expenses of $326,000[129] - The company has no off-balance sheet arrangements or long-term debt obligations[134][135] - The company maintains its cash in low-risk investments, minimizing exposure to interest rate risk[133] Revenue and Income - The company generated licensing revenue exceeding $187,000,000 from the Remote Power Patent from May 2007 to September 30, 2023, but no revenue has been received since the patent's expiration on March 7, 2020[95] - For the nine months ended September 30, 2023, the company reported revenue of $820,000 from litigation settlements, compared to no revenue for the same period in 2022[116] - Interest and dividend income for the nine months ended September 30, 2023 was $1,161,000, an increase of $629,000 from $532,000 in the same period of 2022[120] Expenses and Losses - Operating expenses for the nine months ended September 30, 2023 were $3,004,000, an increase of $435,000 from $2,569,000 in the same period of 2022[117] - The company recognized a net loss of $1,909,000 or $0.08 per share for the nine months ended September 30, 2023, compared to a net loss of $618,000 or $0.03 per share for the same period in 2022[127] - The company recognized $532,000 of net losses related to its equity share of ILiAD for the three months ended September 30, 2023, compared to $285,000 for the same period in 2022[113] Investments - The company has invested $7,000,000 in ILiAD, a clinical stage biotechnology company, which has significant risks and uncertain outcomes[94] - The company recorded realized and unrealized gains on marketable securities of $420,000 for the nine months ended September 30, 2023, compared to losses of $1,358,000 in the same period of 2022[124] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2023 was $753,000, a decrease of $4,427,000 from $5,180,000 for the same period in 2022[130] - Net cash provided by investing activities increased by $26,588,000 to $11,350,000 compared to $(15,238,000) for the nine months ended September 30, 2022[131] - Net cash used in financing activities was $3,159,000 for the nine months ended September 30, 2023, compared to $2,915,000 for the same period in 2022, reflecting an increase in treasury share repurchases[133] Corporate Governance - The Chief Executive Officer and Chief Financial Officer confirmed the effectiveness of the company's disclosure controls and procedures as of the end of the reporting period[139] - There were no changes in internal controls over financial reporting that materially affected the company during the fiscal quarter ended September 30, 2023[140] Future Plans - The company plans to continue its licensing efforts and seeks to acquire additional intellectual property assets to monetize[98] Accounting Estimates - The company’s critical accounting estimates include revenue recognition and the valuation of equity method investments, which could materially affect reported results[137][138]